Section 25 of The National Institutes of Design Act, 2014 in hindi
- (1)1[Every Institute] shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form as may be prescribed, in accordance with such general directions as may be issued by the Central Government in consultation with the Comptroller and Auditor-General of India.
- (2)The accounts of the Institute shall be audited by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Institute to the Comptroller and Auditor-General of India.
- (3)The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Institute shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India, generally has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Institute.
- (4)The accounts of the Institute as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before each House of Parliament.
Summary
- Every Institute must keep correct accounts and relevant records.
- They must prepare an annual statement of accounts, including a balance sheet, in a form chosen by the Central Government.
- The Comptroller and Auditor-General of India (C&AG) is responsible for auditing these accounts.
- The Institute is required to pay for any costs the C&AG spends while performing the audit.
- Auditors have the right to see all books, vouchers, and papers, and they can inspect any office of the Institute.
- The audited accounts and report are sent to the Central Government to be shown to both Houses of Parliament.
Practical examples
FAQ
1. Who decides what the annual balance sheet should look like?
The Central Government decides the form after talking with the Comptroller and Auditor-General of India.
2. Does the Institute have to pay for its own audit?
Yes, any money the C&AG spends to conduct the audit must be paid back by the Institute.
3. Can an auditor demand to see private office files?
Yes, the auditor has the right to demand all connected books and documents and can inspect any office of the Institute.
4. What happens after the audit is finished?
The certified accounts and the audit report are sent to the Central Government, which then places them before both Houses of Parliament.
Test yourself
Q1.Under Section 25 of The National Institutes of Design Act, 2014, who is officially responsible for auditing the accounts of an Institute?
Q2.According to Section 25 of The National Institutes of Design Act, 2014, what is the legal status of the auditor when checking Institute records?
Q3.Under Section 25 of The National Institutes of Design Act, 2014, who must the Central Government consult before prescribing the form of the annual statement of accounts?
Q4.Under Section 25 of The National Institutes of Design Act, 2014, what must happen after the audit report is forwarded to the Central Government?